Archive for the China Economy Category

Salient to Investors: Many investors move money out of China in ways that circumvent its tough limits. China’s foreign-exchange reserves reached nearly $4 trillion in 2014 but have dropped by more than $341 billion since. CBRE estimates that Chinese investment in overseas commercial properties totaled $6.5 billion in half1 2015

Salient to Investors: David Stockman writes: Expect a central banker to soon herald that more monetary heroin is coming, triggering a market rally and pronouncements that its “correction” is over. It will take time for the market to lose its unwarranted faith in central bank omnipotence. However, money will now be made by selling

Salient to Investors: Global growth is changing but we are not on the verge of a global recession. UK and US growth is solid, and the Eurozone is staging a weak recovery. China’s stock market drop says little about the health of the Chinese economy and matters little to investors outside China,

Salient to Investors: More and more analysts are pointing to problems in China and other markets as posing a real threat to the American economy. Raoul Pal at the Global Macro Investor said the global GDP pie is shrinking and cites the dollar’s upward move against nearly all emerging-market currencies. In

Salient to Investors: David Stockman writes: The S&P 500 has sliced through both the 50-day and 200-day moving averages. 2130 on the S&P 500 will prove to be a generational high. CAT, China, European luxury brands, the NASDAQ Biotech Index are shorts. Expect the Fed to announce they are well short of

Salient to Investors: Bill Bishop at Sinocism said: China’s stock market has historically been irrelevant both to the domestic Chinese economy and the global economy. China has tarnished its reputation with its bungled response to its stock market plunge. Damien Ma at the Paulson Institute said it is premature to conclude the

Salient to Investors: China is primarily behind the apparent panic in the global economy. Recent Chinese economic data contradicts its official forecast of 7% growth. The Wall Street Journal says China could move to stimulate its economy by the end of August or in early September, as high technology and entrepreneurship

Salient to Investors: David Stockman writes: The real danger comes from the official institutions who have lapsed into empty ritualism and contrivance while the global economy and financial system becomes more unstable by the day. No sane person would inject $95 billion of new debt into busted Greece, or consider another round of fiscal stimulus

Salient to Investors: David Stockman writes: The bull market is dead, yet stock option addicted corporate executives are buying their own drastically over-priced shares hand-over-fist. Corporate stock buybacks and dividends are back to late 2007 levels of all of net income, lured by 80 months of ZIRP and $3.5 trillion of debt monetization by

Salient to Investors: Fareed Zakaria said: The Iran nuclear agreement is flawed, but has the toughest terms ever negotiated and sets back Iran’s nuclear program more than any serious military campaign would. Automatic re-imposition of sanctions can be triggered unilaterally by the US. Iran gets sanctions relief regardless because allies will not extend sanctions